8. Resolution 4578 - Notice of Public Hearing - Water Rates and Meter FeesCity of Kalispell
Post Office Box 1997 - Kalispell, Montana 59903-1997 - Telephone (406)758-7700 Fax(406)758-7758
TO:
FROM:
SUBJECT:
MEETING DATE:
BACKGROUND:
Mayor and City Council
Glen Neier, City Attorne C"
Water - Resolution Calling for Public Hearing.
August 21, 2000
The budget for fiscal 2001 contains significant capital outlay
items in the Water utility. Roofs on water reservoirs #1 & #2 are
in need of replacement at an estimated cost of $400,000. Further,
in conjunction with the Main Street reconstruction project, the
City will be replacing a water main from Center Street to Sunset
Boulevard at a cost of $660,000. The City has sufficient funds to
cover the cost of the roof replacement. However, the water main
replacement will require that the City seek a SRF Loan to cover
expenses. In order to retire the debt and provide the debt
coverage, the City needs to raise additional revenue of
approximately $100,000 per year over the 15 year life of the loan.
An increase in water rates of 10% will provide the additional
revenue.
The City Water Department also desires to accelerate the meter
replacement program. In order to finance the program, a meter
charge will become a fee imposed on all water users of the utility.
Under Montana law, the City must hold a public hearing on any
proposed change in the rates, charges, fees, schedules or
classifications utilized by the utility. Resolution No. 4578 sets
the date for the public hearing on October 16, 2000. A Notice,
included as part of your packet, will be published and mailed as
provided by law to all water utility customers.
On October 16, 2000, the Council will consider a final
resolution setting the rates, fees, schedules, charges and
classifications. If adopted, the new tariff schedule will become
effective with the January billing cycle.
A motion and vote to adopt Resolution No. 4578 is in order.
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RESOLUTION NO. 4578
A RESOLUTION SETTING A DATE FOR PUBLIC HEARING ON A PROPOSAL TO
ADOPT INCREASES IN THE FEES, SCHEDULES, RATES, CHARGES AND
CLASSIFICATIONS IMPOSED ON THE CUSTOMERS OF THE CITY OF KALISPELL
WATER UTILITY.
WHEREAS, the City of Kalispell's Water Utility needs to replace
certain significant capital elements within its
infrastructure, primarily an 18" main in Main Street and
failing roofs on two underground reservoirs, and
WHEREAS, the costs of said replacements are anticipated to be
approximately $1,060,000, and
WHEREAS, the City has rates in place to provide for $400,000 of
the cost of replacement, and
WHEREAS, the City, in order to fund the additional cost of
replacement or the sum of $660,000, must raise additional
revenues of ten percent (10 %) through an increase in fees
and rates charged to customers of the City water utility,
and
WHEREAS, a ten percent (10%) increase in water rates will generate
approximately $100,000 in revenue per year, and
WHEREAS, additionally, the City desires to implement a water meter
replacement program with a water meter fee based upon the
meter size to fund replacement of water meters on a
fifteen (15) year cycle, and
WHEREAS, the water meter replacement program will generate
approximately $40,000 per year and shall be designated
for water meter replacement only, and
WHEREAS, prior to initiating any increase in the fees, schedules,
rates, charges, and classifications, the City is
required, pursuant to Section 69-7-111, Montana Code
Annotated, to hold a public hearing on the matter after
giving due and proper notice of said hearing.
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NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
KALISPELL, AS FOLLOWS:
SECTION I. That there is hereby set a Public Hearing on
the 16th day of October, 2000, at 7:00 o'clock
P.M. M.S.T. in the Council Chambers, City
Hall, Kalispell, Montana, to discuss a
proposal to yield a 10% increase in the total
revenues to finance a portion of the cost of
replacing capital items and the implementation
of a meter charge.
SECTION II. The City Clerk and City Attorney are hereby
authorized and directed to make, publish and
distribute notices of said Public Hearing in
conformity with Section 69-7-111, MCA.
PASSED AND APPROVED BY THE CITY COUNCIL AND SIGNED BY THE MAYOR OF
THE CITY OF KALISPELL, ON THE DAY OF , 2000.
Wm. E. Boharski
Mayor
Attest:
Theresa White
City Clerk
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CITY OF KALISPELL
NOTICE OF PROPOSED RATE INCREASE
A Proposal to increase rates and fees of the water utility of the
City of Kalispell will be presented at a Public Hearing, Monday, October
16, 2000, in the Council Chambers of City Hall, 312 1st Avenue East,
Kalispell, Montana, at 7:00 P.M. The increase in water rates will be 10%
of the total revenue and would be effective with the January, 2001 billing.
The City also will establish a meter fee for water meter replacement.
The present rate schedule for water use is $1.26 per thousand (1000)
gallons used, with a $2.56 billing fee per billing cycle. The proposed
rate increase of 10% will result in a rate of $1.39 per thousand (1000)
gallons. The billing fee will not change.
The meter fee will be established at $1.00 per billing cycle for
5/8-3/411, $1.67/cycle 111, $3.33/cycle 1 %", $4.67/cycle 211, $17.50/cycle
311, and $24.67/cycle 411. The meter fees for 611, 8" and 12" will be
established at the time of the original installation in accordance with the
15 year life cycle of the meter.
The City will utilize the rate increase to fund a revenue bond or a
loan of approximately $660,000 for water main replacement on North Main
Street. It is anticipated that a 10% increase in sewer rates will generate
approximately $100,000 per year. The meter fee will generate approximately
$40,000 per year and shall be dedicated to meter replacement.
Any person concerned with the proposed water rate increase may appear
at this hearing and make oral statements or present same in writing. Also
written comments may be submitted for Council consideration by delivering
the same to the City Clerk prior to hearing.
Detailed schedules for services are on file in the office of the City
Clerk and are available for examination by anyone interested. If there are
questions that might be answered by telephone you may call (406) 758-7720.
RATES IN EFFECT
Water per M
NOW 1-1-01
$1.26 $1.39
Following are examples of bi-monthly charges covering water.
Now 1-1-01
6,000 Gallons $ 7.56 $ 8.34
10,000 Gallons $12.26 $13.90
12,000 Gallons $15.12 $16.68
Sprinkling $.75/M $.83/m
Multiple user and out of city charges will be applied as in the past.
Publish: September 23, 2000
September 30, 2000
October 7, 2000
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